Volunteer Income Tax Assistance (VITA) / Tax Counseling ...floridastudentsaves.com/Volunteer Standasrd of Conduct Pub 4961... · Volunteer Income Tax Assistance (VITA) / Tax Counseling

4961

Publication 4961 (Rev. 10-2014) Catalog Number 58618U Department of the Treasury Internal Revenue Service www.irs.gov

Volunteer Income Tax Assistance (VITA) / Tax Counseling for the Elderly (TCE)

VITA/TCE Volunteer Standards of Conduct - Ethics Training 2014 RETURNS

Take your VITA/TCE training online at www.irs.gov (keyword: Link & Learn Taxes). Link to the Practice Lab to gain experience using tax software and take the certification test online, with immediate scoring and feedback.

How to Get Technical Updates?Updates to the volunteer training materials will be contained in Publication 4491X, VITA/TCE Training Supplement. To access this publication, in the upper right hand corner of www.irs.gov, type in “Pub 4491X” in the search field.

During the tax season Volunteer Tax Alerts will be issued periodically. Type “volunteer alerts”, in the search field to access all tax alerts.

Volunteer Standards of Conduct

VITA/TCE ProgramsThe mission of the VITA/TCE return preparation programs is to assist eligible taxpayers in satisfying their tax responsibilities by providing free tax return preparation. To establish the greatest degree of public trust, volunteers are required to maintain the highest standards of ethical conduct and provide quality service.

All VITA/TCE volunteers (whether paid or unpaid workers) must complete the Volunteer Standards of Conduct Training, and sign Form 13615, Volunteer Standards of Conduct Agreement, prior to working at a VITA/TCE site. In addition, return preparers, quality reviewers, and VITA/TCE tax law instructors must certify in tax law prior to signing this form. This form is not valid until the site coordinator, sponsoring partner, instructor, or IRS contact confirms the volunteer’s identity and signs and dates the form.

As a volunteer in the VITA/TCE Programs, you must:

1. Follow the Quality Site Requirements (QSR).2. Not accept payment or solicit donations for federal or state tax return preparation.3. Not solicit business from taxpayers you assist or use the knowledge you gained (their

information) about them for any direct or indirect personal benefit for you or any other specific individual.

4. Not knowingly prepare false returns.5. Not engage in criminal, infamous, dishonest, notoriously disgraceful conduct, or any other

conduct deemed to have a negative effect on the VITA/TCE Programs.6. Treat all taxpayers in a professional, courteous, and respectful manner.

Failure to comply with these standards could result in, but is not limited to, the following:

• Your removal from all VITA/TCE Programs;• Inclusion in the IRS Volunteer Registry to bar future VITA/TCE activity indefinitely;• Deactivation of your sponsoring partner’s site VITA/TCE EFIN (electronic filing ID number);• Removal of all IRS products, supplies, loaned equipment, and taxpayer information from your

site;• Termination of your sponsoring organization’s partnership with the IRS;• Termination of grant funds from the IRS to your sponsoring partner; and• Referral of your conduct for potential TIGTA and criminal investigations.

TaxWise® is a copyrighted software program owned by CCH Small Firm Services (CCH). All screen shots that appear throughout the official Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) training materials are used with the permission of CCH. The screen shots used in this publication—or any other screen shots from TaxWise® or its affiliated programs—may not be extracted, copied, or distributed without written approval from the IRS SPEC Office of Products, Systems, & Analysis.

Confidentiality Statement:All tax information you receive from taxpayers in your VOLUNTEER capacity is strictly confidential and should not, under any circumstances, be disclosed to unauthorized individuals.

Standards of Conduct (Ethics) 1

Introduction

The integrity of the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs depends on maintaining public trust. All taxpayers using VITA/TCE services should be confident they are receiving accurate return preparation and quality service.

All volunteers are responsible for providing the highest quality and best service to taxpayers. Along with this responsibility, all volunteers must sign Form 13615, Volunteer Standards of Conduct Agreement each year, stating they will comply with the Quality Site Requirements (QSR) and uphold the highest ethical standards.

Furthermore, all IRS Stakeholder Partnerships, Education and Communication (IRS-SPEC) agency partners must sign Form 13533, Sponsor Agreement, certifying they will adhere to the strictest standards of ethical conduct. Form 13533 is valid for one year after the signature date.

All volunteers must complete the Volunteer Standards of Conduct (VSC) Training and pass a competency test with a score of 80% or higher. This training will provide:

• An explanation of the six Volunteer Standards of Conduct defined in Form 13615

• Information on how to report possible violations

• Consequences of failure to adhere to the program requirements

• Examples of situations that raise questions on ethical behavior

• An overview of the intake/interview and quality review processes

• The components of a complete intake/interview and quality review process

Why are we doing this?During recent filing seasons, the Treasury Inspector General for Tax Administration (TIGTA) and IRS-SPEC uncovered unacceptable practices at a few VITA/TCE sites. In response to these issues, IRS-SPEC enhanced the Volunteer Standards of Conduct. The intent is to provide guidance and a structure for regulating VITA/TCE volunteers and to protect taxpayers.

When unscrupulous volunteers intentionally ignore the law, it compromises the integrity of the VITA/TCE programs and the public’s trust. Unfortunately, due to the actions of a few, the VITA/TCE programs’ integrity and trust have been tested. In these cases, IRS-SPEC can and does take appropriate actions against the partners and volunteers involved.

Volunteer Standards of Conduct (Ethics) Training

IRS-SPEC is ultimately responsible for oversight of the VITA/TCE programs. The agency often receives complaints from taxpayers, partners, and congressional members when assessment notices are issued. IRS-SPEC researches and responds to all inquiries, but ultimately it is the partner’s/sponsor’s responsibility to take correc-tive actions.

Standards of Conduct (Ethics)2

Objectives

At the end of this lesson, using your reference materials, you will be able to:

• List the six Volunteer Standards of Conduct

• Describe unethical behavior

• Identify consequences for failing to comply with the standards

• Explain how volunteers are protected

• List the basic steps volunteers are required to use during the intake/interview process

• Identify the components of a quality review

Unethical Defined

IRS-SPEC defines unethical as not conforming to agreed standards of moral conduct, especially within a particular profession. In most cases, unethical behavior is acted upon with the intent to disregard the estab-lished laws, procedures, or set policies.

Do not confuse an unethical action with a lack of knowledge or a simple mistake.

Volunteer Standards of Conduct (VSC)

All volunteers face ethical issues, which often arise in unexpected situations that require quick decisions and good judgment. In many cases, a volunteer will react to unusual situations and realize later that it was, in fact, an ethical dilemma.

The Volunteer Standards of Conduct were developed specifically for free tax preparation operations. Form 13615, Volunteer Standards of Conduct Agreement, applies to all conduct and ethical behavior affecting the VITA/TCE programs. Volunteers must agree to the standards prior to working in a VITA/TCE free return prep-aration site.

All participants in the VITA/TCE programs must adhere to these Volunteer Standards of Conduct:

1. Follow the ten Quality Site Requirements (QSR).All taxpayers using the services offered through the VITA/TCE Programs should be confident they are receiv-ing accurate return preparation and quality service. The purpose of QSR is to ensure VITA/TCE sites are using consistent site operating procedures that will ultimately assist with the accuracy of volunteer prepared returns. See Publication 5166, Quality Site Requirements, for a full description of each QSR.

Quality Site Requirements only become violations to the standards of conduct if volunteers refuse to comply with the QSR. If the problem is corrected, it is not a violation of the VSC.

The ten QSR are briefly described below:

example

If volunteer Mary prepares a return, which includes a credit the taxpayer does not qualify for because Mary did not understand the law, Mary did not act unethically. However, if Mary knowingly allowed a credit for which the taxpayer did not qualify, Mary committed an unethical act and violated the Volunteer Standards of Conduct.

What do I need?

□ Form 13614-C, Intake/ Interview & Quality Review Sheet

□ Form 13615, Volunteer Standards of Conduct Agreement

□ Publication 1084, IRS Volunteer Site Coordinator’s Handbook

□ Publication 4299, Privacy and Confidentiality – A Public Trust


QSR#1,Certification

All VITA/TCE volunteers must annually complete the VSC training and pass the VSC test with a score of 80% or higher prior to working at a VITA/TCE site.

Volunteers who answer tax law questions, instruct tax law classes, prepare or correct tax returns, and/or conduct quality reviews of completed tax returns must be certified in tax law. At a minimum, all VITA/TCE instructors must be certified at the Advanced level or higher (based on the level of tax topics taught). At a minimum, Quality Reviewers must be certified to the Basic certification level or higher (including the specialty levels) based on the complexity of the tax return.

Site Coordinators must complete Site Coordinator training annually by reviewing Publication 1084, Site Coordinator’s Handbook, and Publication 5088, Site Coordinator Training. Instructors, Site/local Coordinators, return preparers, and Quality Reviewers are required to view Publication 5101, Intake/Interview and Quality Review Training.

QSR#2,IntakeandInterviewProcess

All volunteer return preparation sites must use Form 13614-C, Intake/Interview & Quality Review Sheet, for every return prepared. It is a requirement for all IRS tax law certified volunteers to use a complete intake and interview process when preparing tax returns. To promote accuracy, this process must include an interview with the taxpayer while reviewing Form 13614-C prior to preparing the return.

QSR#3,QualityReviewProcess

All volunteer prepared returns must be quality reviewed and discussed with the taxpayer. A quality review must include a discussion with the taxpayer and an explanation of the taxpayer’s responsibility for the accu-racy of their tax return. Quality reviews should be conducted by a designated reviewer or by peer-to-peer review. SPEC encourages the Quality Reviewers to be the most experienced person in tax law application.

QSR#4,ReferenceMaterials

All sites must have at least one copy (paper or electronic) of the following reference materials available for use by the IRS tax law certified volunteers and Quality Reviewers:

• Publication 4012, Volunteer Resource Guide

• Publication 17, Your Federal Income Tax for Individuals

Site/local Coordinators are required to have a process in place to ensure all Volunteer Tax Alerts or AARP Cyber Tax Messages have been reviewed and discussed with all volunteers, within five days after IRS issu-ance.

QSR#5,VolunteerAgreement

All volunteers (preparers, Quality Reviewers, Greeters, etc.) must complete the VSC Training and test, which includes an overview of the intake/interview and quality review processes, and certify to their adherence annually by signing and dating Form 13615 prior to working at a site. Form 13615 is also used to capture the levels of tax law certification the volunteer has achieved. See the following chart for the certification paths.


QSR#6,TimelyFiling

All sites must have a process in place to ensure every return is electronically filed or delivered to the taxpayer in a timely manner.

QSR#7,CivilRights

Title VI of the Civil Rights Act of 1964 information must be displayed or provided to taxpayers at the first point of contact with them at all VITA/TCE sites.

QSR#8,SiteIdentificationNumber

It is critical that the correct Site Identification Number (SIDN) is reported on all returns prepared by VITA/TCE sites.

QSR#9,ElectronicFilingIdentificationNumber

The correct Electronic Filing Identification Number (EFIN) must be used on all returns prepared.

QSR#10,Security,PrivacyandConfidentiality

All guidelines discussed in Publication 4299, Privacy and Confidentiality – A Public Trust, must be followed.

For Site Coordinators who prepare tax returns, provide tax law assistance, correct rejected returns, or quality review tax returns, they must certify in tax law to the level required for the complexity of the returns. If they do NOT perform any of these duties, they are not required to certify in tax law, as shown by the dotted line in the certification paths chart.


Publication 4299 outlines the need to protect the physical and electronic data gathered for tax return preparation and keep confidential the information provided by the taxpayer. Included in these guidelines is the need to protect any client identification numbers, user names, and passwords used at the site. Partners and volunteers must not share client identification numbers, user names, and/or passwords.

2. Do not accept payment or solicit donations for federal or state tax return preparation.“Free” means we do not accept compensation for our services. Therefore, we do not want to confuse the taxpayer by asking for donations. Donation or tip jars located in the return preparation or taxpayer waiting area are a violation of this standard. A client may offer payment, but always refuse with a smile and say something like, “Thank you, but we cannot accept payment for our services.” If someone insists, recommend cookies or donuts for the site. Taxpayers can make cash donations to the sponsoring organization, but not in the tax prep-aration area. Refer taxpayers who are interested in making cash donations to the appropriate website or to the Site Coordinator for more information.

Donation or tip jars can be placed in another area at the site as long as that area does not give the impression that the site is collecting the funds for return preparation. This cannot be in the entry, waiting, tax preparation, or quality review areas.

Taxpayers’ federal or state refunds cannot be deposited into VITA/TCE volunteer or any associated partners’ personal or business bank/debit card accounts. VITA/TCE sites may only request direct deposit of a taxpayer’s refund into accounts bearing the taxpayer’s name.

3. Do not solicit business from taxpayers you assist or use the knowledge gained about them (their information) for any direct or indirect personal benefit for yourself or any other specific individual.As a volunteer, you must properly use and safeguard taxpayers’ personal information. Furthermore, do not use confidential or nonpublic information to engage in financial transactions, and do not allow its improper use to further your own or another person’s private interests.

example

You finish a time-consuming return and the client is very grateful. On her way out, the client stops by and tries to sneak a $20 bill in your pocket, saying, “I would have paid ten times that at the preparer across the street.” Return the money and explain that you cannot accept money for doing taxes, but the center may appreciate a donation which can be made at the Center’s downtown office or via their website.

example

You are a volunteer preparer and an accountant. You cannot solicit business from the taxpayer.

example

You are the site’s Greeter. Your daughter asks you to take candy orders at the site for her school fund-raiser. You explain to her that as a VITA/TCE volunteer you cannot solicit personal business.

For additional information on Quality Site Requirements, refer to Publication 5166, Quality Site Requirements, or search “Strengthening the Volunteer Programs” on www.irs.gov.


Keep taxpayer and tax return information confidential. A volunteer preparer may discuss information with other volunteers at the site, but only for purposes of preparing the return. Do not use taxpayer information for your personal or business use.

Securingconsent

There will be some instances when taxpayers will allow their personal information to be used other than for return preparation. Under Internal Revenue Code § 7216, all volunteer sites using or disclosing taxpayer data for purposes other than current, prior, or subsequent year tax return preparation must secure two consents from the taxpayer: consent to use the data and consent to disclose the data.

Exceptionstorequiredconsents

Volunteer sites that use or disclose the total number of returns (refunds or credits) prepared for their taxpayers at their site (aggregate data) for fundraising, marketing, and publicity are not required to secure the taxpayers’ consent. This information cannot include any personally identifiable information, such as the taxpayer’s name, SSN/ITIN, address or other personal information, and does not disclose cells containing data from fewer than ten tax returns.

This exception does not apply to the use or disclosure in marketing or advertising of statistical compilations containing or reflecting dollar amounts of refunds, credits, or rebates, or percentages relating thereto.

Taxpayer Data Usage

Are Consents Required?

Number of

Consents Type of ConsentsUsing or disclosing taxpayer data to prepare current, prior or subsequent year tax returns.

No None None

Using or disclosing taxpayer data for purposes other than preparing current, prior, or subsequent year tax return.

Yes 2 1. Consent explaining how the data will be used.

2. Consent explaining how the data will be disclosed.

Exception: Reporting the number of returns (or types of returns such as EITC, CTC, etc.) prepared for fundraising, marketing, publicity, or other uses related to the volunteer site’s tax return preparation business.

No None None

Reporting any data containing return dollar amounts for marketing or advertising or any other non-fundraising activities.

Yes 2 1. Consent explaining how the data will be used.

2. Consent explaining how the data will be disclosed.

Reporting any data containing return dollar amounts for fundraising activities.

No None None

For additional information on IRC 7216 required consents, refer to Publication 4299, Privacy and Confidentiality – A Public Trust.

example

Your primary business includes selling health insurance policies. While preparing a tax return, you notice the taxpayer is self-employed. You ask if the taxpayer has health insurance to determine eligibility for health insurance deductions. You cannot offer to sell the taxpayer health insurance through your busi-ness.


4. Do not knowingly prepare false returns.It is imperative that volunteers correctly apply tax law to the taxpayer’s situation. While a volunteer may be tempted to bend the law to help taxpayers, this will cause problems down the road. Volunteers must not knowingly prepare false returns.

Trust in the IRS and the local sponsoring organization is jeopardized when ethical standards are not followed. Fraudulent returns can result in many years of taxpayer interaction with the IRS. The taxpayer may be required to pay additional tax plus interest and penalties resulting in an extreme burden. In addition, the taxpayer may seek damages under state or local law from the SPEC partner for the volunteer’s fraudulent actions. Even so, the IRS would still seek payment of the additional taxes, interest, and penalties from the taxpayer.

Hardshiponthetaxpayer

For a low-income taxpayer, it could be impossible to make full payment and recover from return fraud. If full payment is not received, the taxpayer will receive several demand notices. If full payment is still not received, the taxpayer will be sent through the IRS collection process. This could also involve the filing of a tax lien that will affect the taxpayers’ credit report, or a levy (withholding) on their bank accounts and/or wages. The taxpayer may be eligible for an installment agreement, but it could take several years to pay the IRS debt.

example

A volunteer preparer told the taxpayer that cash income does not need to be reported. The return was completed without the cash income. The Quality Reviewer simply missed this omission and the return was printed, signed, and e-filed. The volunteer has violated this standard.

However, since the Quality Reviewer did not knowingly allow this return to be e-filed incorrectly, the Quality Reviewer did not violate this standard. Remember not to confuse an unethical action with a lack of knowledge or a simple mistake.

example

A taxpayer’s return fraudulently contains the earned income tax credit (EITC). The taxpayer has already received the refund when an audit notice is issued. During the audit, the taxpayer cannot provide docu-mentation to support the EITC claim.

The taxpayer is disallowed $3,000 in EITC and now has a balance due of over $4,000, including penal-ties and interest. This amount reflects only the EITC disallowance. The amount could be much more if coupled with the loss of dependency exemption, Head of Household filing status, and the child tax credit. A $3,000 EITC disallowance can quickly generate a bill of over $6,000 when all accompanying disallow-ances are considered.

example

A volunteer prepares a fraudulent return by knowingly claiming an ineligible dependent. The taxpayer received a notice from IRS disallowing the dependent and assessing additional taxes, interest, and penalties. The taxpayer may seek money from the SPEC partner, but must still pay the IRS the addi-tional taxes, interest, and penalties.


IdentityTheft

Nationwide, identity theft continues to grow at an alarming rate. Unfortunately there have been instances of unscrupulous volunteers using information they have obtained at a VITA/TCE site to steal the identity of taxpayers. For example, using a stolen social security number to file a false tax return to obtain the refund is identity theft. Any suspicion of identity theft will be reported to IRS Criminal Investigation (CI) and Treasury Inspector General for Tax Administration (TIGTA).

The IRS considers this a very serious crime and has put in place measures to detect possible identity theft situations at VITA/TCE sites. The IRS is continually implementing new processes for handling returns, new filters to detect fraud, new initiatives to partner with stakeholders, and a continued commitment to investigate the criminals who perpetrate these crimes.

5. Do not engage in criminal, infamous, dishonest, notoriously disgraceful conduct, or any other conduct deemed to have a negative effect on the VITA/TCE programs.Volunteers may be prohibited from participating in VITA/TCE programs if they engage (past and future) in criminal, infamous, dishonest, or notoriously disgraceful conduct, or any other conduct prejudicial to the government. Take care to avoid interactions that discredit the program. In addition, a taxpayer may look to state or local law to seek money from the SPEC partner for a volunteer’s fraudulent actions.

Allowing an unauthorized alien to volunteer at a VITA/TCE site is prohib-ited. An “unauthorized alien” is defined as an alien not lawfully admitted into the United States. All volunteers participating in the VITA/TCE programs must reside in the United States legally. Site Coordinators are required to ask for proof of identity with a photo ID for each volunteer. However, Site Coordinators or partners are not required to validate the legal status of volunteers. Therefore, by signing Form 13615, volunteers are certifying that they are a legal resident.

example

Jane, an IRS tax law certified volunteer, is working at a VITA site on the first day the site is open. She has volunteered to electronically file the tax returns for the site to help out the Site Coordinator. Therefore, she has been given the needed permission level in the tax preparation software.

That day, Joe, the Site Coordinator, opens the locked VITA file cabinet and discovers an e-file accep-tance report he forgot to destroy from the previous year. He asks Jane to take the report down the hall to the shredder because it has several social security numbers listed. Jane puts the report in her purse without Joe’s knowledge.

Later that night at home, Jane opens the VITA tax preparation software and prepares falsified tax returns for the eight social security numbers listed on the report she took from the VITA site that morning. She makes sure the returns all have high refunds. Jane puts her own bank account information in the direct deposit fields and electronically files the returns.

Jane has stolen the identity of these eight taxpayers by preparing false federal tax returns to steal the refunds.

Jane will soon discover SPEC has a system that extracts information pertaining to tax returns filed through the VITA/TCE Programs where multiple tax refunds are being deposited into a single bank account. Jane’s actions will be reported to IRS CI and TIGTA.

If you have information indicat-ing that another volunteer has engaged in criminal conduct or violated any of the Volunteer Standards of Conduct, imme-diately report such information to your Site Coordinator, email IRS at [email protected], or call 1-877-330-1205. The toll free number is only in opera-tion from January through May.


Consequences

Volunteers performing egregious activities are barred from volunteering for VITA/TCE programs, and may be added to a registry of barred volunteers. The taxpayer is liable for any tax deficiency resulting from fraud, along with interest and penalties, and may seek money from the preparer and the SPEC partner.

6. Treat all taxpayers in a professional, courteous, and respectful manner.To protect the public interest, the IRS and its employees, partners, and volunteers must maintain the confi-dence and esteem of the people we serve. All volunteers are expected to conduct themselves professionally in a courteous, businesslike, and diplomatic manner.

Volunteers take pride in assisting hard-working men and women who come to VITA/TCE sites for return prep-aration. Taxpayers are often under a lot of stress and may wait extended periods for assistance. Volunteers may also experience stress due to the volume of taxpayers needing service. This situation can make patience run short. It is important to remain calm and create a peaceful and friendly atmosphere.

example

A taxpayer’s refund was stolen by a volunteer return preparer at a VITA site. The taxpayer sought mone-tary damages from the SPEC partner for the volunteer’s fraudulent actions.

example

You finish a difficult return for Millie, who has self-employment income, several expenses, and very few records. In addition, her son turned 25 and moved out early in the year. She owes the IRS about $50. After you carefully explain the return, Millie sputters, “You don’t know what you’re doing. I always get a refund! My neighbor is self-employed and she got $1,900 back.” In this situation, you should take a deep breath and courteously explain that every return is different. If necessary, involve the Site Coordinator.

example

A partner’s program director was convicted of embezzling funds from an unrelated organization. The program director’s criminal conduct created negative publicity for the partner. The partner was removed from the VITA/TCE programs.


Taxpayer Civil RightsThe Internal Revenue Service will not tolerate discrimination based on race, color, national origin (includ-ing English proficiency), disability, sex (in education programs or activities) or age in programs or activi-ties receiving federal assistance from the Department of the Treasury – Internal Revenue Service.

Taxpayers with a disability may require a reasonable accommodation in order to participate or receive the benefits of a program or activity supported by the Department of the Treasury – Internal Revenue Service. A reasonable accommodation is any change made in a business environ-ment that allows persons with disabilities equal access to programs and activities. Our Site Coordinators and Site Managers at federally assisted sites are responsible for ensuring that all requests for reason-able accommodation are granted when the request is made by a qualified individual with a disability. Taxpayers with limited English proficiency (LEP) may require language assistance services in order to participate or receive the benefits of a program or activity funded or supported by the Internal Revenue Service. Language assistance services may include oral and written translation, where necessary. Site Coordinators at federally assisted sites must take reasonable steps to ensure that LEP persons have meaningful access to its programs or activities. For additional guidance, please refer to Civil Rights Division Advisories (CRDA) #6, 7, and 17, dated December 2013.

If a taxpayer believes that he or she has been discriminated against, a written complaint should be sent to the Department of the Treasury - Internal Revenue Service at the following address:

Operations Director, Civil Rights Division Internal Revenue Service, Room 2413

1111 Constitution Avenue, NW Washington, DC 20224

For all inquiries concerning taxpayer civil rights, contact the Civil Rights Division at the address refer-enced above, or e-mail [email protected].

Due Diligence

By law, tax return preparers are required to exercise due diligence in preparing or assisting in the preparation of tax returns. IRS-SPEC defines due diligence as the degree of care and caution reasonably expected from, and ordinarily exercised by, a volunteer in the VITA/TCE programs. This means, as a volunteer, you must do your part when preparing or quality reviewing a tax return to ensure the information on the return is correct and complete.

Doing your part includes confirming a taxpayer’s (and spouse’s, if applicable) identity and providing top-quality service by helping them understand and meet their tax responsibilities.

Generally, IRS-certified volunteers may rely in good faith on information from a taxpayer without requiring documentation as verification. However, part of due diligence requires volunteers to ask a taxpayer to clarify information that may appear to be inconsistent or incomplete. When reviewing information for its accuracy, volunteers need to ask themselves if the information is unusual or questionable.

Make an effort to find the answerWhen in doubt:

• Seek assistance from the Site Coordinator

• Seek assistance from a tax preparer with more experience

• Reschedule/suggest the taxpayer come back when a more experienced tax preparer is available


• Reference/research publications (i.e. Publication 17, Publication 4012, Publication 596, etc.)

• Research www.irs.gov for the answer

• Research the Interactive Tax Assistance (ITA) to address tax law qualifications

• Contact the VITA Hotline at 1-800-829-8482

• Advise taxpayers to seek assistance from a professional tax preparer

If at any time a volunteer becomes uncomfortable with the information and/or documentation provided by a taxpayer, the volunteer should not prepare the tax return.

Failure to Comply with the Standards of Conduct

Who enforces the standards?Because the U.S. tax system is based on voluntary compliance, taxpayers are able to compute their own tax liability. Most taxpayers compute their tax accurately, but at times unscrupulous taxpayers and preparers evade the system by filing fraudulent returns. For this reason, some sponsoring organizations may choose to perform background checks on their volunteers.

The VITA/TCE programs are operated by sponsoring partners and/or coalitions outside the IRS. However, IRS is responsible for the oversight of these programs. Generally, volunteers are selected by partners and not by the IRS. A volunteer tax preparer serves an important role. In fact, SPEC’s partners and their volunteers are the most valuable resources in the volunteer tax preparation program.

IRS has the responsibility for providing oversight to protect the VITA/TCE programs’ integrity and maintain taxpayer confidence. IRS-SPEC recognizes its volunteers’ hard work and does not want it overshadowed by a volunteer’s lapse in judgment.

How are the standards enforced?To maintain confidence in VITA/TCE programs, IRS-SPEC enhanced Form 13615, Volunteer Standards of Conduct Agreement. The intent is to provide guidance to volunteers and a structure for regulating ethical stan-dards.

If conduct violating the standards occurs at a VITA/TCE site, IRS-SPEC will recommend corrective actions. If the site cannot remedy the conduct, then IRS-SPEC will discontinue its relationship and remove any govern-ment property from the site.

In cases of malfeasance, illegal conduct, and/or management practices that violate the VSC, IRS-SPEC may terminate a grant. A volunteer’s conduct could put a site or partner in jeopardy of losing its government funding.

What if an unethical situation is uncovered at a site?If volunteers, Site Coordinators, or taxpayers identify potential problems at the partner, site, or volunteer level that they feel may require additional, independent scrutiny, they can report them using the external referral process. SPEC employees and managers who identify unethical behavior or violations to the VSC will use an internal referral process.

Volunteer’s role in reporting questionable activityHonest taxpayers and tax preparers preserve the tax system’s integrity. To sustain confidence in the VITA/TCE Programs, you should report violations that raise substantial questions about another volunteer’s honesty, trustworthiness, or fitness as a tax preparer.


Taxpayers and tax preparers who violate tax law are subject to civil and criminal penalties. Any person who willfully aids or assists in, or procures, counsels, or advises the preparation or presentation of a materially false or fraudulent return is subject to criminal punishment.

IRS-SPEC will refer violations to the IRS Criminal Investigation Division or the Treasury Inspector General for Tax Administration. You can anonymously report a violation by calling 1-877-330-1205 (in operation January through May), or emailing [email protected].

Site Coordinator’s ResponsibilityIf a Site Coordinator determines a volunteer has violated the Volunteer Standards of Conduct, the Site Coordinator needs to immediately remove the volunteer from all site activities and notify both the partner and IRS-SPEC with the details of the violation. The Site Coordinator can notify IRS-SPEC by either contacting their relationship manager or using the External Referral Process (VOLTAX). If the Site Coordinator contacts the territory, the territory will use the Internal Referral Process to elevate the referral to headquarters.

It is critical that headquarters be notified as quickly as possible of any potential misconduct by any volunteers to preserve the integrity of the VITA/TCE programs.

ExternalReferralProcess

The external referral process (VolTax) provides taxpayers, volunteers, Site Coordinators, etc. an avenue to report potential unethical problems encountered at VITA/TCE sites. Volunteers and taxpayers can call toll free 1-877-330-1205 or send an e-mail to [email protected]. The toll free number is only in operation from January through May.

The toll free number and e-mail address are available in:

• Publications 4836 and 4836(SP), VITA and TCE Free Tax Preparation Program

• Form 13614-C, Intake/Interview & Quality Review Sheet

• Publication 730, Important Tax Records Envelope

All VITA and TCE sites are required to display Publications 4836 and 4836(SP), or D143 for AARP sites, in a visible location to ensure taxpayer awareness of the opportunity to make a referral.

It is critical volunteers and taxpayers immediately report any suspected questionable behavior. The IRS will investigate the incidents reported on the VolTax toll free number and the email address to determine what events occurred and what actions need to be taken. In addition, your reported violations should be shared with your sponsoring partner and local SPEC territory office.

Taxpayers and tax preparers who violate tax law are subject to civil and criminal penalties. Any person who will-fully aids or assists in, procures, counsels, or advises the preparation of a false or fraudulent return is subject to criminal punishment.

example

While reading the newspaper, Violet, the Site Coordinator at Pecan Public Library, learns that one of her volunteers, Dale, was arrested for identity theft. The article indicates Dale has been using other people’s identities to apply for credit cards and then using these cards for unauthorized purchases. Violet sends an e-mail to [email protected] with the details from the news article. When the site opens the next day, Violet pulls Dale aside and advises him that he cannot work at the site due to his arrest on identity theft charges.


VolunteerRegistry

Volunteers and partners released from the VITA/TCE programs for egregious actions can be added to the IRS-SPEC Volunteer Registry. The IRS-SPEC Director will determine if a volunteer or partner should be added to the registry. The purpose of the registry is to notify IRS-SPEC employees of volunteers and partners who were removed from the VITA/TCE programs due to egregious actions. The registry will include partner or individual names, locations, and affiliated agency or sponsors. Volunteers and/or partners on this list are unable to participate in the VITA/TCE programs indefinitely. Egregious actions include, but are not limited to, one or more of the following willful actions:

• Creating harm to taxpayers, volunteers or IRS employees

• Refusing to adhere to the Quality Site Requirements

• Accepting payments for return preparation at VITA/TCE sites

• Using taxpayer personal information for personal gain

• Knowingly preparing false returns

• Engaging in criminal, infamous, dishonest, notorious, disgraceful conduct

• Any other conduct deemed to have a negative impact on the VITA/TCE programs

What is the impact on VITA/TCE programs?A volunteer positively affects the lives of taxpayers. Unfortunately, one volunteer’s unethical behavior can cast a cloud of suspicion on the entire volunteer tax preparation program. IRS-SPEC has closed down tax sites due to unethical behavior, which left taxpayers without access to free tax preparation in their community. The consequences to the tax site or sponsoring organization may include:

• Terminating the partnership between the IRS and the sponsoring organization

• Discontinuing IRS support

• Revoking or retrieving the sponsoring organization’s grant funds

• Deactivating IRS Electronic Filer’s Identification Number (EFIN)

• Removing all IRS products, supplies, and loaned equipment from the site

• Removing all taxpayer information

• Disallowing use of IRS-SPEC logos

What is the impact on taxpayers?A taxpayer is responsible for paying only the correct amount of tax due under the law. However, an incorrect return can cause a low-to-moderate income taxpayer financial stress. Although a return is accepted, it may not be accurate. Acceptance merely means the required fields are complete and that no duplicate returns exist.

It is imperative to correctly apply the tax laws to the taxpayer’s situation. While a volunteer may be tempted to bend the law to help taxpayers, this will cause problems down the road. For example:

• Depending on the tax issue, a taxpayer may receive a refund and later receive a letter from the IRS ques-tioning the return. While a letter does not conclusively mean the return is wrong, it begins a tax controversy process, and can create anguish for the taxpayer.

• The taxpayer may be subject to the examination process including collection, litigation, and appeals. If additional tax is assessed, interest and penalties accrue from the date the return was originally due until payment is made.


• A taxpayer who cannot pay the full balance due may be able to make installment payments, but interest and penalties will continue to accrue until full payment is remitted. Moreover, the IRS may file a notice of federal tax lien upon all property or rights belonging to the taxpayer. This can have a negative effect on the taxpayer as it becomes public knowledge and appears on his/her credit reports. In addition, if a taxpayer refuses or neglects to pay the tax, the IRS can use levies and seizures to satisfy balance due accounts. The law provides some protections for taxpayers, but in general, a taxpayer who fails to pay their tax is subject to enforcement action.

Howmightthetaxpayerfindrelief?

If tax collection would cause significant hardship, the taxpayer may be able to find relief. Significant hardship means serious deprivation, not simply economic or personal inconvenience to the taxpayer. In this case, collec-tion action may stop, but interest and penalties will continue to accrue until the taxpayer can afford to pay.

Whatifthetaxpayerisnottellingthetruth?

As described above, the tax controversy process can be long and drawn-out. A volunteer who senses that a taxpayer is not telling the truth should not ignore it. Conduct a thorough interview, paying special attention to the uncomfortable information, to ensure there is no misunderstanding. If that does not resolve the matter, refer the taxpayer to the Site Coordinator. Remember, if a volunteer is not comfortable with the information provided from the taxpayer, the volunteer is not obligated to prepare the return.

Taxpayer review and acknowledgementAfter the return is finished, a certified volunteer must briefly discuss the filing status, exemptions, income, adjusted gross income, credits, taxes, payments, and the refund or balance due with the taxpayer. If the taxpayer has any questions, concerns, or requires additional clarification about the return, the volunteer must assist the taxpayer. If necessary, ask the Site Coordinator for assistance.

Tax returns include the following disclosure statements:

• For the Taxpayer: “Under penalties of perjury, I declare that I have examined this return and accompany-ing schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete.”

• For the Preparer: “Declaration of preparer (other than the taxpayer) is based on all information of which preparer has any knowledge.”

Volunteers must remind taxpayers that when they sign the return (either by signing Form 1040, U.S. Individual Income Tax Return, signing Form 8879, IRS e-file Signature Authorization, or entering a self-select PIN), they are stating under penalty of perjury that the return is accurate to the best of their knowledge.

Volunteer Protection Act

Public Law 105-19, Volunteer Protection Act of 1997 (VPA) generally protects volunteers from liability for negligent acts they perform within the scope of their responsibilities in the organization for whom they volun-teer. The VPA is not owned or written exclusively for Internal Revenue Service. This is a public law and relates to organizations that use volunteers to provide services.

What is a volunteer? Under the VPA, a “volunteer” is an individual performing services for a nonprofit organization or a governmen-tal entity (including as a director, officer, trustee, or direct service volunteer) who does not receive for these services more than $500 total in a year from the organization or entity as:


• Compensation (other than reasonable reimbursement or allowance for expenses actually incurred), or

• Any other thing of value in lieu of compensation

Although an individual may not fall under the VPA definition of a “volunteer,” which means they may not be protected under the VPA, they are still considered volunteers by the VITA/TCE programs. To ensure protec-tion, those who do not fit this VPA volunteer definition should seek advice from their sponsoring organization’s attorneys to determine liability protection rights.

What does the VPA do? The purpose of the VPA is to promote the interests of social service program beneficiaries and taxpayers and to sustain the availability of programs, nonprofit organizations, and governmental entities that depend on volunteer contributions. It does this by providing certain protections from liability concerns for volunteers serv-ing nonprofit organizations and governmental entities.

The VPA protects volunteers from liabilities if they were acting within the scope of the program and harm was not caused by willful or criminal misconduct, gross negligence, reckless misconduct, conscious, flagrant indif-ference to the rights or safety of the individual harmed by the volunteer. The VPA does not protect conduct that is willful or criminal, grossly negligent, reckless, or conduct that constitutes a conscious, flagrant indiffer-ence to the rights or safety of the individual harmed by the volunteer.

Volunteers should only prepare returns that are within their tax law certification level, their site’s certifica-tion level, and the level of certification under the VITA/TCE programs. See the Scope of Service Chart in Publication 4012 for more information.

In general, if volunteers are performing their responsibilities using the Volunteer Standards of Conduct, they are protected. However, local and state laws still must be considered. Sponsoring organizations should seek advice from their attorneys to determine how this law protects their volunteers.

Instructions for Completing the VSC Agreement

All volunteers must complete the Volunteer Standards of Conduct Training, pass the test with a score of 80% or higher, and sign Form 13615, Volunteer Standards of Conduct Agreement, annually, prior to working at a VITA/TCE site. In addition, a Site Coordinator, return preparer, Quality Reviewer, or VITA/TCE tax law instruc-tor must view Publication 5101, Intake/Interview and Quality Review Training, and certify in tax law.

Certification (training and testing) can be acknowledged by:

• Using Link & Learn Taxes, or

• Using the paper VSC test in Publication 4961, VITA/TCE Volunteer Standards of Conduct – Ethics Training, and Form 6744, VITA/TCE Volunteer Assistor’s Test/Retest for the tax law certification

Volunteers using Link & Learn Taxes must:• Pass the Volunteer Standards of Conduct training and test

• Complete the Intake/Interview and Quality Review Training and pass the appropriate tax law certification tests (Basic, Advanced, etc.) if preparing returns, performing quality review, or other position requiring tax law testing

• Check the Volunteer Agreement checkbox in Link & Learn Taxes acknowledging that Form 13615, Volunteer Standards of Conduct Agreement, has been read, signed, and dated (after training and/or testing)

– The Link & Learn certification system on VITA/TCE Central will display Form 13615 with the checkbox checked indicating the Intake/Interview and Quality Review Training was completed


– After each test, the Link & Learn system on VITA/TCE Central will add the letter “P” to Form 13615 indicating a passing score for the Volunteer Standards of Conduct Training and (if applicable) tax law certification levels

• Finish the form by completing the applicable fields (if missing): name, home address, site name, partner name, daytime phone number, e-mail address, volunteer position, and any other required fields

• Print and review the form and give the completed form to the partner designated official or Site Coordinator

– The partner designated official or Site Coordinator will verify your iden-tity (with photo identification) and certify by signing and dating the form

Volunteers using the paper test must:• Take the Volunteer Standards of Conduct Training and pass the competency test in Publication 4961

• Complete the Intake/Interview and Quality Review Training (Publication 5101)

• Use Form 6744, pass the appropriate certification tests (Basic, Advanced, etc.) if preparing returns, performing quality review, or other position requiring tax law testing

• Complete the entire Form 13615, Volunteer Standards of Conduct Agreement, by adding full name, home address, site name, partner name, daytime phone number, e-mail address, volunteer position, and number of volunteer years

Instructors will:

• Use Publication 4961 to administer the VSC training and test

• Review Publication 5101, Intake/Interview and Quality Review Training, which can be downloaded from irs.gov or secured from your IRS relationship manager

• Use Form 6744 to administer the tax law tests

• Provide any information that volunteers do not know, such as the partner name

• Mark “P” for the Volunteer Standards of Conduct Training indicating a passing score

• Mark “P” for each appropriate tax law certification level indicating a passing score

• Return the form to each volunteer for their signature and date

• Use photo identification to verify the volunteer’s identity and certify by signing and dating Form 13615

• Provide additional processing instructions for the form

Resolving Problems

In general, the Site Coordinator is the first point of contact for resolving any problems that a volunteer may encounter. If a volunteer feels an issue can’t be handled by the Site Coordinator, email IRS at [email protected], call toll free 1-877-330-1205, and/or contact the local IRS-SPEC relationship manager.

VSC and tax law certifica-tion can be completed by using Publication 4961, Form 6744, VITA/TCE Volunteers Assistor’s Test/Retest, or by using Link & Learn Taxes online. If Link & Learn Taxes is used, volunteers can certify by signing Form 13615 elec-tronically after all required tests are completed with a passing score. Therefore, no signature is required on the paper form.


For this type of issue: The appropriate action is:Individual or company is violating the tax laws

Use Form 3949-A, Information Referral. Complete this form online at www.irs.gov/pub/irs-pdf/f3949a.pdf. Print the form and mail to: Internal Revenue Service, Fresno, CA, 93888.

Victims of identity theft Refer taxpayers to Identity Protection Specialized Unit at 1-800-908-4490. The Protection Specialized Unit may issue these taxpayers a notice. Volunteers may prepare returns for taxpayers who bring in their current CP01A Notice or special PIN (6 digit IPPIN). Include the IPPIN on the soft-ware main information page. Instructions are located at: http://www.irs.gov/uac/Identity-Protection

Taxpayers believe they are victims of discrimination

Refer taxpayers to:

(Written complaints) Operations Director, Civil Rights Division; Internal Revenue Service, Room 2413; 1111 Constitution Ave., NW; Washington, DC 20224.

(Email complaints) [email protected] have account questions such as balance due notices and transcript or installment agreement requests

Refer taxpayers to local Taxpayer Assistance Center or call IRS toll free at 1-800-829-1040.

Federal refund inquiries Tell taxpayers to:

Go to www.irs.gov and click “Where’s My Refund” or call 1-800-829-1954 or 1-800-829-4477.

State/local refund inquiries Refer to the appropriate revenue office.Taxpayers have been unsuc-cessful in resolving their issue with the IRS

Tell taxpayers that the Taxpayer Advocate Service can offer special help to a taxpayer experiencing a significant hardship as the result of a tax prob-lem. For more information, the taxpayer can call toll free 1-877-777-4778 (1-800-829-4059 for TTY/TDD).

Exercises

Using your reference materials, answer the following questions.

Question 1: Taxpayer Edna brings her tax documents to the site. She completes Form 13614-C, Intake/Interview & Quality Review Sheet. She indicates in Part III of Form 13614-C that she has self-employment income along with other income and expenses.

Joe, a volunteer tax preparer, reviews Form 13614-C with Edna. He asks if she brought all of her documents today, and asks to see them. Included in the documents is Form 1099-MISC, Miscellaneous Income, showing $7,500 of non-employee compensation in Box 7. She tells Joe that she has a cleaning business that provides services to local businesses.

Edna says she also received $4,000 in cash payments for additional cleaning work. When Joe asks if she received any documentation supporting these payments, she says no, the payments were simply paid to her for each cleaning job she performed.


At this point, Joe suggests that because the IRS has no record of the cash payments, Edna does not need to report these payments on her return. Edna is concerned and feels like she could “get in trouble” with the IRS if she does not report all of her income. Joe assures her that the chance of the IRS discovering that she did not report cash income is very small.

Joe prepares Form 1040, Individual Income Tax Return. On Schedule C, Line 1 he reports only the $7,500 reported in Box 7 of Form 1099-MISC. When Joe completes the return, he hands it to Edna to sign Form 8879, IRS e-file Signature Authorization.

A. Is there a Volunteer Standards of Conduct violation? If yes, describe.

B. What should happen to the volunteer?

C. What should the volunteer have done?

Question 2: Taxpayer George completes Form 13614-C indicating in Part II that his marital status is single with one dependent, Amelia. Volunteer preparer Marge reviews the intake form and the taxpayer’s information documents.

When Marge asks if Amelia is related to George, he says no, that Amelia is the child of a personal friend who is not filing a tax return. Amelia’s mother told George to claim the child and even gave him Amelia’s social security card. Marge then asks whether George provided more than one-half of Amelia’s support, but George says no. He goes on to say that he should be able to claim Amelia as a dependent because no one else is claiming her.

Marge agrees that although Amelia is not George’s qualifying child or relative, he can still claim her as a dependent because no one else will. Marge goes on to suggest that the child could be listed as George’s niece who lives with him, so that he can file as a Head of Household and claim the Earned Income Tax Credit (EITC). Marge completes Form 13614-C, Section B, accordingly.

Marge assures George that chances of the IRS discovering that he and Amelia are not related would be very small. Marge prepares the return with the Head of Household status and claiming the EITC and Child Tax Credits for “qualifying child” Amelia. George signs Form 8879.




Question 3: Taxpayer Isabel’s completed Form 13614-C indicates that she does not have an account to directly deposit a refund. When volunteer James prepares Isabel’s return, it shows that Isabel is entitled to a $1,200 refund.

James tells Isabel that a paper check may take up to 6 weeks to arrive, but if she has the funds directly deposited to a checking account, the amount would be available in 7-10 business days. He offers to have the money deposited to his own checking account, stating that on receipt of the money he would turn it over to her. Isabel agrees and allows James to enter his routing number and account information on her return. James gives the money to Isabel when he receives it.




Question 4: While volunteer James is completing Isabel’s return, he notes that she is single and asks her if she would like to meet some evening at a local bar so they could get to know each other better. Although Isabel says that she would prefer that he not call her, James says he does not give up that easily and that he will call her later in the week.

Isabel reports the conversation to the Site Coordinator before she leaves the site.



Question 5: Volunteer John is preparing a return for taxpayer Max, who sold stock during the tax year. Max says he does not want to report capital gains and tells John that the cost basis on the stock sold was equal to or higher than the sales price. Based on his own stock portfolio, John believes Max is lying. John explains to Max that if the IRS examines the return, the cost basis will have to be supported by written statements or other documents of the purchases. Max says he understands, but he still wants the return completed with the amounts he has given to John. After John completes the return and Max signs Form 8879, the return is e-filed.



C. What could the volunteer have done?

Question 6: When Joelle, Site Coordinator, returns from a lunch break, she notices the waiting area is nearly empty. When she asks Greeter Jade what happened, Jade says that volunteer Nathan and a taxpayer had a loud, bitter argument, and many taxpayers got concerned and left.

Joelle takes Nathan to a private area and asks him to explain what happened. Nathan says the taxpayer became upset when Nathan told him that as a noncustodial parent he had to have a signed Form 8332, Release/Revocation of Release of Claim to Exemption for Child By Custodial Parent, or he could not claim his children as dependents. Nathan admits that he got angry when the taxpayer started name calling. Nathan says he told the taxpayer, “If you don’t like our free service, then you can go somewhere else.” Nathan also says there was a lot of yelling and cussing on both sides and then the taxpayer left the site.




Intake/Interview and Quality Review Processes

IntroductionTaxpayers should be confident they receive quality service when using services offered through the VITA/TCE Programs. This includes having an accurate tax return prepared. A basic component of preparing an accurate return begins with a conversation with the taxpayer and includes asking the right questions.

Form 13614-C, Intake/Interview & Quality Review Sheet, is a tool designed to assist IRS-certified volunteers in asking the necessary questions to obtain the information necessary to prepare an accurate tax return. IRS reviews indicate that tax return accuracy is improved when Form 13614-C is used correctly with an effective interview of the taxpayer.


Purpose of this TrainingThis training is designed to only provide an overview of the intake/interview and quality review processes so all IRS volunteers understand their responsibilities. However, more detailed training on how to use the intake sheet to prepare and quality review tax returns will be required for certified tax preparers, Site Coordinators, Quality Reviewers, instructors, and local coordinators. The detailed training is available on VITA/TCE Central and by downloading Publication 5101, Intake/Interview and Quality Review Training, from www.irs.gov.

This training will educate all volunteers on their role and involvement in the return preparation process. Volunteers need to understand the process used at a site to prepare a tax return from start to finish. This process should be explained to the taxpayer when they enter the site.

Adherence to the Intake/Interview Process ToolForm 13614-C is a tool similar to what is required when a taxpayer visits a professional tax preparer or uses tax preparation software. It is a starting point to engage the taxpayer in discussion to gather all the necessary information to prepare an accurate tax return.

Just like any tool, it has to be used properly to reach the desired outcome. Each year the Internal Revenue Service has seen improvements with using Form 13614-C. In most cases, taxpayers are completing their sections. However, many volunteers do not:

• Look at the information completed by the taxpayer

• Engage in a conversation with the taxpayer

• Clarify any “unsure” answers the taxpayer has marked

The Intake ProcessUnless noted, most steps of the intake process can be done by a volunteer (Greeter) who has not been certi-fied in tax law. An experienced tax law certified volunteer should be consulted when tax law questions require clarification at any point during the intake process.

The intake/interview and quality review process includes the following components to ensure volunteers obtain the necessary information to prepare an accurate return:

1. The Intake Process:

a. Greeting the taxpayer

b. Explaining the process

c. Providing Form 13614-C to the taxpayer for completion

d. Determining the return certification level, and

e. Assigning the taxpayer to a qualified tax preparer

example

During TIGTA and SPEC shopping reviews, analysts posed as taxpayers at volunteer return preparation sites. The “taxpayers” checked the question on Form 13614-C indicating they had interest income but did not provide a Form 1099-INT. Many volunteers never asked about the interest income during the interview. As a result, the interest income was omitted from the tax return and the tax return was incorrect.


2. The Interview Process

a. Interviewing the taxpayer

b. Preparing the tax return

3. The Quality Review Process

a. Inviting the taxpayer to participate

b. Reviewing the return for accuracy (The steps for performing the quality review are listed on Form 13614-C, Part VII.)

c. Informing taxpayers they are responsible for the information on their tax return

Greetthetaxpayer

During this stage, an assessment should be made to ensure the taxpayer has everything the site needs to prepare the tax return. Performing this task right away ensures taxpayers are not wasting their time by waiting and then being turned away for reasons that could have been discovered early, such as:

• Missing photo identification, social security documents, Forms W-2, Form 1099, etc.

• Having income items not in scope for the site

• Having gross income amounts above the site limits

• Spouse is not present when filing a joint tax return

Explainthestepsoftheintake/interviewandqualityreviewprocesstothetaxpayer

Explain the intake/interview and quality review process so that the taxpayers understand that they are expected to:

• Complete Form 13614-C prior to having the return prepared

• Be interviewed by the return preparer and answer additional questions as needed

• Participate in a quality review of their tax return by someone other than the return preparer

ProvidethetaxpayerForm13614-C

Ask the taxpayer to complete pages 1 and 2 of Form 13614-C. A tax law certified volunteer might need to offer assistance in the following cases.

If taxpayers… Then a tax law certified volunteer should…Cannot complete the form for any reason Fill out the form by asking them the questions and

recording their answersDo not understand a question, they can mark “unsure”

Assist them with answering the question

Have income, expenses, or life events not listed on Form 13614-C, which might indicate an out-of-scope tax return

Review the information and determine if the return is with-in-scope for the site return requirements and volun-teer certifications


Determinethecertificationlevelofthetaxreturn

A non-tax law certified volunteer (Greeter) can perform this part of the process. When a Greeter is not avail-able, a certified preparer should go through similar steps before the return is prepared.

• Page 2 of Form 13614-C identifies the required tax law certification level for each question. The levels are identified as B (Basic), A (Advanced), M (Military), HSA (Health Savings Accounts), COD (Cancellation of Debt), etc.

• A certified volunteer will determine the potential certification level required for the tax return based on how the intake sheet was completed. All questions marked as “yes” and “unsure” should be reviewed to deter-mine the highest certification level needed to prepare the return or to discuss the “unsure” responses.

• The certified volunteer assigning or selecting the tax return for preparation must understand how to identify the certification level required for that return.

If the Greeter cannot assign the taxpayer to a tax law certified preparer with the required certification level listed on Form 13614-C, the Greeter is required to seek assistance to determine if the taxpayer’s return can be prepared at the site. The determination will be based on a combination of the site’s return preparation policy and Scope of Service Chart listed in Publication 4012. This will ensure taxpayers are not erroneously turned away from the site.

Assigntaxreturntothevolunteerpreparer

Every site is required to have a process for assigning taxpayers to volunteer preparers who are certified at or above the level required to prepare their return. The method for identifying certification levels for volunteers can include indicators on name badges, stickers, nameplates, or other partner-created products. Having the certification levels easily identified will assist the Site Coordinator, Greeter, or whoever is responsible for assigning the tax return. SPEC has an optional ID badge (Form 14509) that can be used for this purpose or the site can use its own method to satisfy this requirement.

The Interview ProcessOnly tax law certified volunteers may interview the taxpayer. All tax law certified volunteer preparers and Site Coordinators are required to view a training presentation (Publication 5101, Intake/Interview and Quality Review Training) on how to perform the interview process with the taxpayer. The basic steps are:

• Verify taxpayer ID. Check photo identification for the taxpayer (and spouse, if applicable) and request verification of social security or tax identification numbers for everyone listed on the tax return.

• Review Form 13614-C. Make sure the taxpayer has answered all required questions on Form 13614-C. Any questions left blank or marked “unsure” must be clarified and the correct answer should be recorded on Form 13614-C.

• Interview the taxpayer. Use probing questions to develop and/or clarify information on the intake sheet and to confirm the information provided by the taxpayer is complete and accurate.

• Review documentation. Look at all supporting documentation provided by the taxpayer (Forms W-2, 1099, payment receipts, etc.)

example

A taxpayer completes Form 13614-C, answering yes to the question, “Have a Health Savings Account?” The certification level next to this question is HSA (Health Savings Accounts). All other checked ques-tions show the certification level B (Basic). Because of the need for HSA knowledge, the taxpayer should be assigned to a volunteer who is certified in the HSA course.


• Verify certification level. Make sure the taxpayer’s return is within the preparer’s certification level and within the scope of the VITA/TCE programs. Make all dependent exemption and filing status determina-tions before preparing the return.

Preparing the Tax ReturnAfter interviewing the taxpayer, the tax law certified preparer enters information into the software and prepares the tax return.

The Quality Review ProcessThe Quality Reviewer assigned to a taxpayer should have a certification equal to or above the level needed to prepare the tax return. The site is required to have a process in place for assigning tax returns to the appropriate Quality Reviewer. Volunteers are not permitted to quality review a tax return that they prepared themselves.

The taxpayer must be interviewed during the quality review process. In most cases, the taxpayer will be pres-ent. However, the interview can be conducted using an approved alternative process, such as by phone or using other technology.

The last step of the quality review is informing the taxpayer of their responsibility for the information on the tax return. The taxpayer must be advised to review the return to ensure the information is accurate and complete.

Summary

• All volunteers must agree to the Volunteer Standards of Conduct outlined in Form 13615. The instructor/Site Coordinator/partner must verify the identity, with a photo ID, and certification level of the volunteer before the volunteer is allowed to work at the site.

• Failure to comply with the standards may adversely affect the taxpayer, the site, the partner and the VITA/TCE Programs.

• Violations of the Volunteer Standards of Conduct will not be tolerated. If a violation is discovered, appropri-ate actions will be taken, up to removal of the volunteer, closing of the site, and discontinuing IRS support to the sponsoring partner.

• Review Publication 1084, Site Coordinator’s Handbook, for actions the Site Coordinator should take if a VSC violation is identified.

• The Volunteer Protection Act generally protects volunteers from liability as long as they are acting in accor-dance with the standards.

• Volunteers and partners with questions about the standards should contact their IRS-SPEC relationship manager.

example

Following preparation of the tax return in the previous HSA example, a Quality Reviewer assigned to this taxpayer must also have HSA certification.


Summary of the Intake/Interview and Quality Review ProcessesTo meet VITA/TCE Quality Site Requirements, volunteers must perform each of the following tasks during the intake/interview process:

• Verify the identity (photo ID) and address of the taxpayer(s) and request verification of social security or tax identification numbers for everyone listed on the tax return.

• Explain the tax preparation process and encourage taxpayers to ask questions throughout the interview.

• Complete Form 13614-C, Intake/Interview & Quality Review Sheet.

– Verify all items in the taxpayer section have been answered

– Note changes and clarifications provided by the taxpayer on the form

• Interview the taxpayer using probing questions to confirm the information provided on Form 13614-C is complete and accurate.

• Review all supporting documentation provided by the taxpayer (Forms W-2, 1099, payment receipts, etc.). If the taxpayer has income or expenses listed on the return which do not require a source document and none were provided, the intake sheet should be marked to show a verbal response was provided.

To meet VITA/TCE Quality Site Requirements, a quality review requires all of the following:

• Inviting the taxpayer to participate. The taxpayer must be involved during the quality review process because the Quality Reviewer needs to be able to ask additional questions.

• Reviewing the return for accuracy using:

– The Form 13614-C, with all section completed,

– The completed tax return, and

– All documents provided by the taxpayer, including those used to verify identity, income expenses, payments, and direct deposit.

• Advising the taxpayers of their responsibility for the information on the tax return.

Exercise Answers

Answer 1A. Yes, Standard 4, knowingly preparing a fraudulent return.

B. Volunteer should be removed and barred from working at a VITA/TCE site and added to the volunteer registry.

C. Cash income should be reported as income on Schedule C.

Answer 2A. Yes, Standard 4, knowingly preparing a fraudulent return. Although the taxpayer insisted on including the

dependent, Marge knew this was wrong.

B. Volunteer should be removed and barred from working at a VITA/TCE site and added to the volunteer registry.

C. Volunteer should educate George on dependent eligibility using Publication 4012, Volunteer Resource Guide, refuse to prepare the tax return, or report the incident to the Site Coordinator.


Answer 3 A. Yes, Standard 2, do not accept payment or solicit donations for federal or state tax return preparation.

Although the volunteer’s intention was to help Isabel get her refund sooner by having it direct deposited instead of mailed, putting it into his own account is problematic and could raise the question of misappro-priation of a tax refund or be perceived as receiving payment for tax return preparation. VITA/TCE volun-teers may only request direct deposit of a taxpayer’s refund into accounts bearing the taxpayer’s name.

B. Volunteer must be counseled that he cannot put any other taxpayer’s refund into his own account. If this continues, he will be removed and barred from the site.

Answer 4 A. Yes, Standard 3, using knowledge gained from the taxpayer for volunteers’ personal benefit.

B. He should be reminded that he cannot use taxpayer’s personal information (marital status and phone number) for his benefit.

Answer 5A. Maybe. Even though Max insists on using the cost basis he provides to John, as long as John has

conducted a thorough interview, especially about the stock sales, he can prepare the return. John should remind Max that taxpayers sign their returns under penalty of perjury, and that Max is ultimately respon-sible for the return.

If Max tells John that the basis amounts are wrong and John prepares the return anyway, then John is violating Standard 4, knowingly preparing a false return.

B. As long as John did not knowingly prepare a false return, nothing should happen. However, if John does know the information is false, then he should be removed, barred from the site, and he could be added to the volunteer registry.

C. John could have refused to prepare Max’s return.

Answer 6 A. Yes, Standard 6. Volunteers must deal with people at the site with courtesy and in a respectful and profes-

sional manner.

B. Nathan should be warned that future outbursts will result in his immediate removal as a volunteer.

C. Nathan should have taken a deep breath and courteously explained the Form 8332 requirements using Publication 4012. If the situation still could not be resolved, Nathan should have requested the taxpayer speak to the Site Coordinator upon her return.


It is important that all individuals who volunteer their time and services in the VITA/TCE programs understand their roles and responsibilities under the program. All volunteers are expected to:

• Receive Standards of Conduct (ethics) training

• Annually, complete VSC/Ethics training and pass a certification test with a score of 80% or higher

• Sign Form 13615, Volunteer Standards of Conduct Agreement, indicating they have taken the ethics train-ing, successfully completed a test, and understand the ethics requirements

These Volunteer Standards of Conduct requirements are in addition to the tax law certification process (i.e., Basic, Advanced, Military, or International) for becoming a qualified volunteer to teach tax law, correct tax returns, conduct quality reviews, prepare tax returns, or address tax law related questions as a volunteer in the VITA/TCE programs.

Use your training and reference tools to answer the questions. You must answer eight of the following ten questions correctly to pass the Volunteer Standards of Conduct test.

Test Questions

Directions

Using your resource materials, answer the following questions.

1. Which of the following is a violation of the Volunteer Standards of Conduct?

a. Knowingly preparing a false tax return

b. Having a donation/tip jar in the taxpayer waiting area at the site

c. Using taxpayer’s personal information to ask for a date

d. All of the above

2. Which volunteers must take Volunteer Standards of Conduct training and test?

a. Site Coordinators/Local Coordinators

b. Quality Reviewers and tax return preparers

c. Greeters

d. All VITA/TCE volunteers

3. If a volunteer violates the Volunteer Standards of Conduct, what are the possible consequences?

a. Removal from the VITA/TCE programs

b. Criminal investigation

c. Elimination of VITA/TCE grant funds

d. Deactivation of EFIN

e. All of the above

Volunteer Standards of Conduct (Ethics) Test


4. Bob, an IRS tax law certified volunteer preparer, told the taxpayer that cash income does not need to be reported because the IRS will never find out. The return was completed without the cash income. Jim, the designated Quality Reviewer, simply missed this omission and the return was printed, signed, and e-filed. Who has violated the Volunteer Standards of Conduct?

a. Bob, the IRS tax law certified volunteer preparer

b. Jim, the designated Quality Reviewer

c. Betty, the Site Coordinator

d. No one has violated the Volunteer Standards of Conduct

5. Jake is an IRS tax law certified volunteer preparer in the VITA/TCE Programs. When preparing a return for Jill, Jake learns that Jill does not have an account to receive a direct deposit of her refund. Jake offers to use his account to receive the direct deposit, and says he will turn the money over to Jill once the refund is depos-ited. Is this an acceptable action under the program?

a. Yes

b. No

6. Heidi, a certified volunteer, is working at the intake station. As part of her duties, she is required to explain to the taxpayer what they are expected to do today as part of the return preparation process. What should Heidi tell them?

a. Form 13614-C must be completed prior to having the return prepared

b. You will be interviewed by the return preparer and asked additional questions as needed

c. You need to participate in a quality review of your tax return by someone other than the return preparer

d. All of the above

7. Volunteers must verify the taxpayer has the following items as soon as possible:

a. Photo identification

b. Social security number documents

c. All income statements, including Forms W-2, 1099-R, etc.

d. All of the above

8. The taxpayer should be informed of their responsibility for the information on the tax return during the quality review process.

a. True

b. False


9. Volunteers who refuse to use the intake/interview process are violating the Standards of Conduct.

a. True

b. False

10. Mary, the Greeter, identifies the taxpayer’s tax return requires Advanced IRS tax law certification. Therefore, the certified tax preparer must be certified to the Advanced level but the Quality Reviewer can be certified to any level, including Basic.

a. True

b. False

Retest Questions

Directions

Using your resource materials, answer the following questions.

1. Is having a donation/tip jar in the waiting area at the VITA/TCE site a violation of the Volunteer Standards of Conduct?

a. Yes

b. No

2. I am currently a volunteer Greeter. I will not be preparing tax returns. I do not need to take the Volunteer Standards of Conduct test.

a. True

b. False

3. Can a volunteer be removed and barred from the VITA/TCE programs for violating the Volunteer Standards of Conduct?

a. Yes

b. No

4. An IRS tax law certified volunteer preparer told the taxpayer that cash income does not need to be reported. The return was completed without the cash income. The designated Quality Reviewer simply missed this omission and the return was printed, signed, and e-filed. Did the designated Quality Reviewer violate the Volunteer Standards of Conduct?

a. Yes

b. No

5. Maggie asks Josh, the tax law certified preparer, to deposit her refund into Josh’s checking account and turn the funds over to her when received. If Josh says yes, he is in violation of the standards.


a. True

b. False

6. Every site is required to have a process for assigning taxpayers to tax law certified preparers who are certified at or above the level required to prepare their return.

a. True

b. False

7. Which of the following statements is not correct?

a. Volunteers should confirm the taxpayer’s identity through photo ID.

b. Volunteers should verify the social security number and/or ITIN.

c. Volunteers should review all documents needed to prepare an accurate return.

d. Volunteers do not need to refer to the intake sheet when preparing the tax return.

8. The quality review process includes:

a. Assigning a Quality Reviewer with the appropriate certification level.

b. Inviting the taxpayer to participate in the quality review.

c. Explaining to the taxpayer that they are responsible for the information on their tax return.

d. All of the above

9. An interview of the taxpayer should only be performed if the site is not busy.

a. True

b. False

10. Explaining the intake/interview and quality review process is important so the taxpayer understands they are expected to:

a. Have a completed Form 13614-C prior to having the return prepared

b. Answer the tax preparer’s additional questions during the interview

c. Participate in the quality review of their tax return

d. All of the above


Link & Learn Taxes is web-based training designed specifically for VITA/TCE volunteers. Each volunteer’s ability to prepare complete and accurate returns is vital to the credibility and integrity of the program. Link & Learn Taxes, as part of the complete volunteer training kit, provides the path to achieving this high level of quality service.

Link & Learn Taxes and the printed technical training kit, Publication 4480, work together to help volunteers learn and practice.

Link & Learn Taxes for 2014 includes:

• Access to all VITA/TCE courses

• Easy identification of the VITA/TCE courses with the course icons

• As you progress through a lesson, the content for Basic, Advanced, Military, or International will display, depending on the level of certification you selected

• PowerPoint presentations that can be customized to fit your classroom needs

• VITA/TCE Central to provide centralized access for training materials and reference links

• The Practice Lab

• Gives volunteers practice with an early version of the IRS-provided tax preparation software

• Lets volunteers complete workbook problems from Publication 4491W

• Lets volunteers prepare test scenario returns for the test/retest

Link & Learn Taxes

Go to www.irs.gov, type “Link & Learn” in the Keyword field and click Search. You’ll find a detailed overview and links to the courses.

FSA (Facilitated Self Assistance) empowers taxpayers to prepare their own return with the assistance of a certified volunteer. Taxpayers complete their own return using interview-based software supplied by leaders in the tax preparation industry. Volunteers assist taxpayers with tax law and software questions.

The Virtual VITA/TCE approach uses the same process as traditional VITA/TCE except that the preparer and/or quality reviewer and taxpayer are not face-to-face. Technology such as internet, fax and video are used to connect the IRS-tax law certified volunteer preparer and/or quality reviewer and the taxpayer.

For more information contact your SPEC Relationship Manager to see if you should start a FSA or Virtual VITA site in your community.

Your online resource for volunteer and taxpayer assistance

The Volunteer Resource Center(Keyword: Volunteer Resource Center)

• Hot topics for volunteers and partners• Site Coordinator’s Corner• Volunteer Tax Alerts• Volunteer Training Resources• EITC Information for Partners• e-file Materials and Outreach Products

Tax Information for Individuals(Keyword: Individuals)

• 1040 Central (What’s new this filing season)• Where’s My Refund• EITC Assistant - Available in English and Spanish• Tax Trails for answers to common tax questions• Alternative Minimum Tax (AMT) Assistant• Interactive Tax Assistant (ITA)

and much more!

Your direct link to tax information 24/7

www.irs.gov

ww

w.ir

s.g

ov

Documents

Volunteer Income Tax Assistance (VITA) / Tax Counseling ...floridastudentsaves.com/Volunteer Standasrd of Conduct Pub 4961... · Volunteer Income Tax Assistance (VITA) / Tax Counseling